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Posted March 30th, 2009 by Charles Purdy

Weekly € rates and comments – week commencing 30th March 2009

Having started last week positively, largely thanks to a better than expected inflation report., sterling’s performance fell away mid week following an under-subscription of UK government bonds, the first time in seven years, on Wednesday and poorer-than-expected retail sales figures on Thursday. However, on Friday’s sterling rose against the euro due to inflation issues within Europe but at the same time made losses against the US$ as quarterly UK GDP data showed a larger than expected contraction in the UK economy. The Bank of England’s (BoE) monetary policy will again be brought into focus in the coming weeks as a marked increase to UK inflation could help the bank to take a less aggressive stance and put on hold plans for further quantitive easing.

 

The euro which is as €1.0737/£1 which has suffered as a result of events in European states outside of the euro adopted states, continued to falter thanks to major economic deficits and inflation pressures in member states such as Ireland and Italy. Inflation is currently running beyond acceptable levels according to criteria for membership to the single currency in some states and such pressures will surely force the ECB to take action in their meeting on interest rates this week, a cut of 0.5% the widely expected outcome. The euro is approximately 3% down against the US$ over the last week but at similar levels against sterling.

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Posted March 23rd, 2009 by Charles Purdy

Weekly € rates and comments – week commencing 23rd March 2009

Having made broad losses against most major currencies in prior weeks, last week sterling continued to slide against the euro but made substantial gains against the US$. The UK unemployment figures and the minutes from the Bank of England’s (BoE) last meeting on interest rates were both released on Wednesday. The minutes suggested that the  Continue Reading…

Posted March 16th, 2009 by Charles Purdy

Weekly € rates and comments – week commencing 16th March 2009

Having weakened off slightly in previous week’s trading, sterling continued a downward trend against most major currencies throughout last week. Persistent concerns within the UK banking industry as well as weak economic data such as a marked fall in month-on-month industrial production kept sterling under pressure and at a low ebb sliding to a 6  Continue Reading…

Posted March 9th, 2009 by Charles Purdy

Weekly € rates and comments – week commencing 9th March 2009

With little else in terms of other significant economic data due out, the main focus for last week was the rather predictable decision from the Bank of England on interest rates. The decision to cut by another 0.5% to set a new base rate of 0.5% did not have any immediate effect on the value  Continue Reading…

Posted March 2nd, 2009 by Charles Purdy

Weekly € rates and comments – week commencing 2nd March 2009

Another false dawn for sterling started last week as news regarding the re-structuring of RBS, one of the many ailing UK banks, improved confidence in the financial sector and lead to broad gains against most major currencies. However, by close on Tuesday sentiment had turned against sterling and the UK banks thanks to reports of  Continue Reading…

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